Gold prices edged higher today after seeing a sharp fall in the previous two sessions. On MCX, gold prices moved 0.5% higher to 40,188 per 10 gram. In previous two sessions, gold prices had fallen about 1200 per 10 gram. Tracking gold, silver prices also edged higher today, rising 0.6% to 45,823 per kg. In global markets, gold prices moved higher today after falling sharply in the previous session.

Concerns about the spreading coronavirus outbreak from China helped support gold as the death toll neared 500. But global risk appetite was held up by China’s stimulus efforts to mitigate its economic impact.

In global markets, spot global prices were up 0.2% to $1,555.41 per ounce, after a 1.5% slide in the previous session.

Jigar Trivedi, research analyst at Anand Rathi Shares & Stock Brokers, said concerns related to coronavirus will lend support to gold on the downside.

“On MCX, gold can take support near 39,500 while taking resistance near RS 43,000. Silver can take support near 44,500 while taking resistance near 49000. While in Comex gold can take support near $1535 while taking resistance near $1650. Comex Silver can take support $16.50 and resistance near $19.50," SMC Global said in a recent note.

Back in India, gold imports plunged by nearly half in January as record high prices dented physical demand, Reuters reported, citing sources. India imports most of its gold requirement and domestic prices include 12.5% import duty and 3% GST. Gold futures had hit a record high of 41,293 per 10 gram amid US-Iran tensions. Currently, they are down about 1,000 per 10 gram from that level.

Lower buying by consumers in India, the world’s second biggest consumer of the precious metal, could weigh on global prices, say analysts. Jewellers say that domestic demand could revive in the short-term if prices fall. Weddings are one of the biggest drivers of gold purchases in India.

According to World Gold Council, India's gold consumption in 2019 fell 9% from the previous year to 690.4 tonnes, the lowest in three years. (With Agency Inputs)

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